Costs of a Shoe Sold $100 in the United States and Made in ChinaThe cost structure of the shoe manufacturing and retailing industry
is very revealing. The �China effect� is quite clear as the total manufacturing
costs (wages, materiel, other production costs such as energy, and the
manufacturer's profit) account for about 12% of the retail costs. This
is roughly equivalent to the research (design) costs of the shoe product.